German Industry: Structural Challenges and Government-Fueled Revival

Energy crisis following Russia’s 2022 invasion has triggered a recession in German manufacturing, with production falling by 7.5% in four years.

Germany’s New Reality: The Collapse of the Development Model

The energy crisis, a consequence of Russia’s aggression against Ukraine in February 2022, has led to a recession in German industry. In less than four years – from December 2021 to November 2025 – production levels in the manufacturing sector of the largest EU economy have fallen by 7.5%.

The decline is even more pronounced in energy-intensive industries, where production has decreased by 18.7% during the same period.

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